CONROE, TX-Following a long escrow period, a joint venture between New Hyde Park, NY-based Kimco Realty Corp. and Crow Holdings in Dallas has acquired the 303,237-sf Conroe Marketplace from a local developer. When the deed traded, the new center was 90% leased.
George Cushing, senior vice president with Grubb & Ellis Co.'s Houston office, declined to cite the purchase price for the center at 2812 Interstate 45 North. However, experts uninvolved with the transaction say similar power centers in the area can trade for $250 per sf to $275 per sf.
"This was complicated deal because it was still under construction at the time we offered it on the market," explains Cushing, who represented the seller, Gulf Coast Commercial Group. "There were some requirements to commit to a purchase that wouldn't close until the end of the year and we needed that commitment by midsummer."
Cushing tells GlobeSt.com that the Kimco Realty/Crow Holdings partnership fit the bill because of previous experience. The joint venture had acquired the 350,444-sf Copperwood Village Center at 6803 Highway 6 North in February 2006. "We'd been through the process with them and had a high level of confidence in their ability to perform," he adds.
The center is anchored by TJ Maxx, Ross Stores Inc. and Bed Bath & Beyond Inc. Other tenants include PetSmart Inc., Old Navy Inc., Ulta Salon, Cosmetics & Fragrance Inc., Kirkland's Home and Applebee's International Inc. Cushing says the buyer already has commitments to bring the center close to full occupancy. In addition, Gulf Coast Commercial will remain involved in management and leasing.
"Conroe is under supplied on the soft good sides of retail," Cushing notes. "Retailers already there have had a spectacular response, over-performance relative to projections."
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